Business Taxes Law Guide – Revision 2015

Sales and Use Tax Annotations

220.0000 "ENGAGED IN BUSINESS"

Annotation 220.0024

220.0024 Banking Activity in California. An Arizona corporation has no physical presence in California, either directly or indirectly (such as through an agent or representative), and it transacts all its business in California, including banking, by mail, common carrier, or telephone. Section 6203(f) [now 6203(c)(4)] defines "retailer engaged in business in this state" to include a person benefiting from banking activities in California. However, this subdivision is not presently operative because it requires Congress to pass enabling legislation, and Congress has not yet done so. Thus, under current law, the Arizona corporation's banking in this state would not alone bring it within the definition of a retailer engaged in business in this state. 11/12/96. (Am. 2001—3).